Etisalat has agreed to return Payment of 800mn USD to Pakistan

[maithil]

So amount worth those 34 properties will be deducted from this. Expect them to be valued at least 100 million.

 

[AZADPAKISTAN2009]

400 Million are new Late Penalty Charges for not paying for 10 years @ Penalty charged at 5% per month on remaining balance

Total Demand = 800,000,000 , plus 400 , 000,000 late charges

UAE firm , stopped payment when Pakistan rejected transfer of Property Deeds / Ownership to UAE firm

 

[BATMAN]

Why Pakistan paid $800 million to Itisalat on first place?

 

[AZADPAKISTAN2009]

Pakistan Telecommunication company , sold 30-34% stake to UAE firm , 10 years ago
They released some funds may be 200-300 Million , but held back in allocation of 800 Million on promised funds because they claimed, Pakistani Authorities did not transfer Land ownership rights to them for their invested Properties.

They wanted the deeds to clearly indicate the owned the land for which they are building offices and buildings

Pakistan still owns about 60-65% stake in Telecom company

 

[My-Analogous]

UAE-based telecom firm #Etisalat has agreed to release an outstanding payment related to its acquisition of state-owned #PTCL after holding back amount on non-transferred assets from $800 million stuck for over a decade, a senior official said on Friday.

Secretary Privatisation Rizwan Malik told The News that Etisalat agreed to evaluate non-transferred properties and would deduct the amount from unpaid $800 million.

“The company would also conduct physical verification of properties whose ownership titles have already been transferred in the next three months,” Malik said.

Etisalat acquired 26 percent shares of Pakistan Telecommunication Company Limited (PTCL) along with the management control in a privatisation deal of $2.6 billion back in 2006 when the newly-appointed Adviser to the Prime Minister Imran Khan on Finance Hafeez Sheikh was the privatisation minister.

The Middle East telecom giant, however, paid only $1.8 billion to Pakistan at that time with the remaining amount to be paid in nine installments.

The dispute emerged when ownership titles of 34 properties were not transferred to the telecom company. Islamabad doesn’t want to transfer these properties to Etisalat for legal reasons.

The foreign firm was earlier insisting that all the properties must be transferred to PTCL. So far, 3,214 properties titles have been transferred to the shares acquirer.

Sources said senior officials of Etisalat held a meeting earlier this week with the Privatisation Commission’s officials and informed them that it hired a legal firm Khan Associates for valuation of the 34 properties.

In January 2015, the Finance Ministry wrote a letter to the escrow account agent of London-based HSBC Bank, saying that 3,214 properties had been transferred to PTCL, while remaining 34 couldn’t be transferred due to various reasons, including legal impediments.

It was also informed that independent valuators determined financial worth of the properties at $92.4 million, according to the letter, titled ‘second shortfall properties’, available with this scribe.

The $800 million have been lying in the escrow account for over a decade and it would be transferred to Pakistan after the settlement of the issue.

Secretary Malik further said the government would be able to complete some privatisation transactions, including SME Bank Limited, First Women Bank Limited, 1,223 megawatts Balloki Power Plant, 1,230MW Haveli Bahadur Power Plant, Mari Petroleum Limited (divestment of remaining shares), Jinnah Convention Centre, Islamabad and Services International Hotel by the yearend.

Earlier, Malik told the Senate Standing Committee on Privatisation that the government was making efforts to ‘amicably’ resolve the issue with the UAE’s company. The committee met with Senator Mir Muhammad Yousaf Badini in the chair.

The committee was also informed about the privatisation of four federal lodges in Murree with area of 16.8 kanals, which was sold in 1997.

It was told that the Privatisation Commission determined its value at Rs82.311 million, while it was sold at Rs42 million through open bidding, which was not a profitable transaction

800 they hold for 10 years and after getting profit now they are releasing. We should calculate share base on current value and asked them to pay accordingly or cancel the contract and and get new buyer

 

[The Accountant]

UAE-based telecom firm #Etisalat has agreed to release an outstanding payment related to its acquisition of state-owned #PTCL after holding back amount on non-transferred assets from $800 million stuck for over a decade, a senior official said on Friday.

Secretary Privatisation Rizwan Malik told The News that Etisalat agreed to evaluate non-transferred properties and would deduct the amount from unpaid $800 million.

“The company would also conduct physical verification of properties whose ownership titles have already been transferred in the next three months,” Malik said.

Etisalat acquired 26 percent shares of Pakistan Telecommunication Company Limited (PTCL) along with the management control in a privatisation deal of $2.6 billion back in 2006 when the newly-appointed Adviser to the Prime Minister Imran Khan on Finance Hafeez Sheikh was the privatisation minister.

The Middle East telecom giant, however, paid only $1.8 billion to Pakistan at that time with the remaining amount to be paid in nine installments.

The dispute emerged when ownership titles of 34 properties were not transferred to the telecom company. Islamabad doesn’t want to transfer these properties to Etisalat for legal reasons.

The foreign firm was earlier insisting that all the properties must be transferred to PTCL. So far, 3,214 properties titles have been transferred to the shares acquirer.

Sources said senior officials of Etisalat held a meeting earlier this week with the Privatisation Commission’s officials and informed them that it hired a legal firm Khan Associates for valuation of the 34 properties.

In January 2015, the Finance Ministry wrote a letter to the escrow account agent of London-based HSBC Bank, saying that 3,214 properties had been transferred to PTCL, while remaining 34 couldn’t be transferred due to various reasons, including legal impediments.

It was also informed that independent valuators determined financial worth of the properties at $92.4 million, according to the letter, titled ‘second shortfall properties’, available with this scribe.

The $800 million have been lying in the escrow account for over a decade and it would be transferred to Pakistan after the settlement of the issue.

Secretary Malik further said the government would be able to complete some privatisation transactions, including SME Bank Limited, First Women Bank Limited, 1,223 megawatts Balloki Power Plant, 1,230MW Haveli Bahadur Power Plant, Mari Petroleum Limited (divestment of remaining shares), Jinnah Convention Centre, Islamabad and Services International Hotel by the yearend.

Earlier, Malik told the Senate Standing Committee on Privatisation that the government was making efforts to ‘amicably’ resolve the issue with the UAE’s company. The committee met with Senator Mir Muhammad Yousaf Badini in the chair.

The committee was also informed about the privatisation of four federal lodges in Murree with area of 16.8 kanals, which was sold in 1997.

It was told that the Privatisation Commission determined its value at Rs82.311 million, while it was sold at Rs42 million through open bidding, which was not a profitable transaction

So finally government has started functioning

 

[Samlee]

Great News

 

[ssethii]

It won't. Since it'll be just going to PTCL which is almost private now.

before posting kindly confirm your info is right or wrong or if you don't have any info then refrain from posting. PTCL is managed by Etisalat after buying 26% shares from govt of Pakistan. Govt failed to transfer all the assets and fulfil all agreement terms to which Etisalat held 800mil payment and the dispute lingered on and now it seems to have been settled and the remaining payment would be released.

 

[AZADPAKISTAN2009]

In a way this 800 Million is a Blessing in disguise , recent research done , for Pakistan Steeles Mills indicated that Steeles Mills need 200 Million investment to refurbish it 100% and make it fully Operational

It is a great chance for Pakistan , Take 800 Million from UAE, invest it into Pakistan Steels Mills and revive the Industrial Unit with 200 Million Dollar

 

[ps3linux]

Its a very sad situation, doubly sad because PTCL was sold to Etisalat along management for a total stake of 24-26% or 30% don't remember exactly, but the whole deal was totally against the interests of Pakistan, for a paltry sum the agreement stated prime properties of PTCL were to transferred to Etisalat.

Incumbent finance advisor was the main culprit that time, his brother told me once in a funny way that he had made so much money out of the deal that he did not need to do anything in life again.

PTCL's current headquarter will be worth few billion rupees now, if I add interest for late payment, EPS that etisalat has been receiving for the last decade or so converted into today's rate, the exorbitant salaries that etisalat people send at all key positions in PTCL (walid irshaid jordanian was the worst of them all), free training of its staff in Pakistan, honestly are in a big loss situation. From what I am hearing selling rest of PTCL stake at throwaway prices is among the top agenda of Mr. Sheikh.

It the same as Mr. Zardari trying to sell TIP Haripur along property to Chinese or for that matter Sandak.